logo-loader
European Metals Holdings

European Metals boosts NPV and IRR at Cinovec with adjustments to process flowsheet

Cinovec is one of the most significant lithium deposits in Europe

1560755869_lithium-100118-2.jpg
Lithium is used in batteries for electric vehicles

European Metals Holdings Ltd (LON:EMH)(ASX:EMH) shares jumped higher on Monday after the firm said it has updated the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H2O) from the Cinovec project in the Czech Republic. 

This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore.

WATCH: European Metals' Keith Coughlan details updated Cinovec PFS

The results significantly enhance the likely economics of the Cinovec project.

It’s now estimated that it will cost European Metals US$3,435 to produce each tonne of LiOH.H2O.

Factoring in the new adjustments, the post-tax net present value of Cinovec rises by 105% to US$1.1bn, using an 8% discount rate.  

Correspondingly, the internal rate of return increases by 37% to 28.8%, as the its envisioned the project will produce 25,267 tonnes of battery grade lithium per year.

The total capital cost is set at US$482.6mln.

"I am very pleased to report to shareholders on the completion of this update to our 2017 preliminary feasibility study for the Cinovec project which adds significantly to the already robust forecast economics for the project,” said European Metals managing director Keith Coughlan.

In morning trading, shares in European Metals were 11.1% higher at 22.50p.

 -- Adds share price -- 

Quick facts: European Metals Holdings

Price: £0.17

Market: AIM
Market Cap: £25.73 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of European Metals Holdings named herein, including the promotion by the Company of European Metals Holdings in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

European Metals' Keith Coughlan discusses significant potential partnership...

European Metals Holdings Ltd's (LON:EMH) managing director Keith Coughlan caught up with Proactive London's Andrew Scott following the news they've secured a €2mln convertible loan from CEZ Group - one of Central and Eastern Europe's largest power utilities. Coughlan says the successful...

on 16/7/19

2 min read